PRESENTATION ON THE GENERAL BANKING FUNCTION OF

PROJECT GUIDE Prof. MADHAVI MADAM

SUBMITED BY PRASHANT VAGHASHIA Roll No. 106 Submitted To:

INTRODUCTION TOBANKING SECTOR

Banking industry has acquired a key position in mobilizing

resources for defence & for socio economic development of the country. It is said that Bank which are that need of & great wealth of our country have got to be kept very sacred. Just as water is for irrigation, good banks are for the countrys industry & trade. Todays banks cater to the needs of agriculturists, industrialist, traders, women, students & to all other sections of the society. Thus they accelerate the economic growth of a country & steer the wheel of the economy towards its goal of Self reliance in all fields. Hence today banking sector has become the lifeline of the economy.

Types of Banks
Regional Rural Bank Nationalize Bank State Bank Group Co-operative Bank Private Bank Foreign Bank

General Information of Co-Operative Banks

In 1904 the co-operative movement started in India with a view

to provide finance to the agriculturist at a low rate of interest. The co-operative society has to take the place of the money lenders & provide cheap loan to the farmers for productive purposes. Even though many types of co-operative societies have been started particularly for the artisans & others, the most common form of such societies deal in rural credits. And today cooperative banks have started verities of services with different technologies. Once the Mahatma Gandhi has remarked that there is sweetness in co-operation; there is no one who weak or strong among those who co-operate. Each is equal to other.

PRINCIPLE & CHARACTERISTICS

VOLUNTARY ASSOCIATION OPEN MEMBERSHIP EQUAL VOTING RIGHTS SERVICE MOTIVE

TYPES OF CO-OPERATIVE BANKS State co-operative banks Central co-operative banks Urban co-operative banks

ROLE OF CO-OPERATIVE BANKS

The main aim of the bank is to extend credit facilities to

the small traders, workers & other middle class people. This bank derive their funds for working partly through share capital contributed by the members & partly through deposits collected from members, general public & render usual banking services The liability of members is normally unlimited. This enables the society to raise funds from outside agencies & also encourages member to take keen interest in working of the society.

THE CO-OPERATIVE BANK OF RAJKOT LTD.

Ramnikbhai Dhami, Chief Promoter and founder of this Bank,

co-operative leader and advocate by profession laid a strong foundation of bank on 24.11.1980 and today The Co-operative Bank of Rajkot Ltd. (popularly known as RAJ BANK) has various special characteristics added to its success portfolio. Forged ahead successfully owing to its transparent administration and management group as also due to the efficiency and sharpness of the banks employees. The bank was started in a small premise and converted into a large and most popular bank having its branch network in the entire Rajkot District, Junagadh District and also branches in Surendranagar and Ahmedabad city. In years to come the bank will expand its business in the entire Gujarat State.

CORPORATE MISSION
Survive to the common man. Enhance the value of share holders. Emerge as a symbol of public trust & confidence by creating a

positive image. Maintain excellence in operation & management by bringing in transparency & integrity. Develop & motivate human resource there by cultivating professional culture in the banking operation. Ensure speedy & satisfactory customer services through continuous product innovation & aggressive marketing strategies. And the last but not least that is. To assist the weaker section of the society Is the primary motto of the RAJ Bank.

BANK DETAIL
Special Characteristics :

ZERO NET NPA since 1990 and persistent efforts to maintain the same. Strong Brand Equity, Largest Non Schedule Bank in Gujarat Respectable ranking and position in Gujarats Top Cooperative banks. Fully Computerisation and automation. Successful and effective leadership. Profitability. Insurance of all types of advances. Inter personal banking relations. Sound Liquidity. Strict monitoring & strong internal control ATM in smaller towns. We are pioneer in introducing ATMs in the entire Saurashtra and Kutch region in the Co-operative banking sector.

DETAIL OF RAJ BANK YEAR 2010-11 RS IN LACS

PARTICULAR OWNFUNDS DEPOSITS ADVANCES PROJECTION 15500 84000 50400 ACTUCAL 16853.07 87172.05 51420.42 CHANGE + 8.73 % +3.78 +2.02%

TOTAL BUSINESS
INVESTMENT WORKING FUNDS GROSS PROFIT

134400
41400 102000 2400

138592.47
45711.69 104975.99 2528.46

+3.12%
+10.41% +2.92% +5.35%

INCREASE IN PROFIT
Amt in lacs.
2006 2007 2008 2009 2010 280.67 324.77
1000 1400 1200

PROFIT

715.75 848.19

800 PROFIT 600

400

1003.65

200

2011

1322.67

2006

2007

2008

2009

2010

2011

DEPOSITS & ADVANCES AT GONDAL BRANCH

YEAR DEPOSITS ADVANCES CURRENT/DEPOSIT RATIO
73.25%

2008-09

2428.02

1778.50

2009-10 2010-11

2448.35 2965.71

3935.46 3558.62

160.74% 119.99 %

INCREASE INTEREST INCOME ANDEXPENSES

2011 2010 Change 7.9% 10.66% 18.65% Interest income Non interest income Interest Expenses Total income 8348.65 938.15 4627 9286 6957.89 869.49 4181 7827 19.99%

DIFFERENT SERVICES OF A RAJ BANK

CURRENT DEPOSIT A current account is an account which is generally opened

by businessmen, companies, institutes, corporations, industrialists etc. Who have huge working capital in their hand. Who are interested in keeping money safe. Who transect with their banker daily. Who received and make payment usually through cheques. Who utilize the agency services of the banker frequently Who are engaged in large scale business activity, social services and government activities.

SAVING DEPOSIT

Features of the saving deposit Restriction on with drawl of amount. Restriction on deposit of amount. Payment of interest. Extra features to the saving account holder of the Raj Bank. Attractive Rate of interest. Easy procedure for account opening. 24 hours banking facility through their ATM centers. Personalized services & special facility by the way of telephonic inquiry. Regular bank statement is provided at home through post or Email. Attractive computerized passbook. No charges for saving account holder.

TERM DEPOSIT
This account attracts those customers who have money

invest for a longer period but do not want to take much of risk. Such person prefers to deposit with commercial banks for a specified period at a specified rate of interest. At present in RAJ BANK the condition of the term deposits is as under. Monthly term deposit amt. 49.38 crores

INTEREST RATES ON DEPOSITS

Sr. No.
1 2 3 4 5 6 7 8

Period
15 to 45 days 46 to 90 days 91 to 121 days 121 days to 179 days 180 days to 1 year 1 Year to 2 Years 2 Years to 3 Years 3 Years to 5 Years

Rate of Interest
4.50 % 5.00 % 5.50 % 6.00 % 6.50 % 7.00 % 7.50 % 8.00 %

5 Years & More

9.00 %

SWOT ANALYSIS:
STRENGTH: This bank is a very reputed in Rajkot & its District. Professional management co-operative team spirit Fully Computerized Profitable & Sound Liquidity Branches in all most developed part of Rajkot WEAKNESS: Modern management concept and sometimes communication gap Not performing marketing activities Not providing ATM facilities in the all developed places. Lower volume of clearance due to higher rate of interest may affect the expansion of the organization.

CONTINUE.
OPPORTUNITIES: Bank can open branches at state level in near future. Bank can introduce new service like NRI loan, ATM etc. Bank can perform marketing activity by TV, Media etc. THREATS: Changes in government policies and in rules and regulation There must be deep study of validity of loan repayment while giving new loan. The financial liability of the borrower should be checked on more scientific and statistical base and not depending on relationship banking.

LOANS:
TERM LOAN: Term loans are generally repayable in more than a year but less

than 10 years. These loans are offered by all Indian financial institutions. Term loans are generally secured through a first mortgage or by way of deposit of title deeds of immovable properties. Any business operator for the purpose of purchase necessary building, build a building or purchase new machinery. For the purpose of this loan is to invest in long term capital. Bank grants these loan 2 lacs to 25 lacs. Rate of interest charged on this loan is 10% to 13%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of loan.

MORTGAGE LOAN
Any kind or traders, businessmen or an industrialist can get

mortgage loan. Bank grants mortgage loan for the any purpose. Bank grants this type of loan Rs. 50,000 to maximum 10 lacs. Bank charges rate of interest on this loan is 12.5% to 13.5%. A person who is gating mortgage loan he has to mortgage land, building or any other fixed assets. Document of properties have to be given to the bank by a person. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 7 years.

SECURED OVERDRAFT
Any kind of traders, businessmen, personally, professional &

industrialist can get secured over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs. 1 lacs to maximum 100 lacs. Bank charged interest on this over draft is 10.75% to 14%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of over draft. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors.

PERSONAL LOAN
Any localize person can get this loan. Bank grants personal loan for the purpose of purchase fridge,

T. V., washing machine or any other thing which can be useful for home management. Bank grants this type of loan Rs. 10,000 to maximum 50,000 or 70% to 90% of the quotation price of the product. Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchase products of purchased product in favor of the bank as a security. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 5 years.

CLEAN OVER DRAFT

Any kind of traders, businessmen, personally, professional &

industrialist can get clean over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs.50, 000. Bank charged interest on this over draft is 12%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of over draft. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors.

VEHICLE LOAN
Any kind of traders, businessmen, personally, professional or

any person can get this type of loan. Bank grants personal loan for the purpose of purchase old or new vehicle for personal or business use. Bank grants this type of loan Rs. 15,000 to maximum 10,00,000 or 70% to 90% of the quotation price of the product. Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchased vehicle in favor of the bank & in RTO applicant need to register as a hire purchased vehicle as a security. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 7 years. Quotation of vehicle, proof of guarantors income (one time only), RTO certificate & other documents are required with the application form.

HOME LOAN
Any localize person can get this loan. Bank grants personal loan for the purpose of purchase or to build

home. Bank grants this type of loan Rs. 15,000 to maximum 15,00,000 or 70% to 90% of the price of the home. Bank charges rate of interest on this loan is 11.50%. Applicants need to make such documents of purchased home in favour of the bank & bank takes all the documents as a security. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 15 years. Application form, other documents specified in the application form and if an applicant want to mortgage any assets than he need to give whole file of that assets and title report through advocate approved by bank only proof of guarantors income (one time only).

CASH CREDIT
A person can get loan up to 10 lacs but in special cases

bank allows him to grants above 10 lacs and person has to repay the loan installment which should have already been decided. In cash credit type loan, person can withdraw money if there is no money in his account.

Demand Draft :
Procedure:

Paying money in cash 2. Fill the form of the draft with payee name and draft money and commission on that 3. Form given to dd department 4. Issuing the draft of the other bank or branch of the bank.
1.

OTHER SERVICE
LOCKER FACILITY

CASH CARD FACILITY

GENERAL & LIFE INSURANCE COVERAGE ATM FACILITY

PAN CARD SERVICES

Findings
The credibility of co-operative bank of rajkot ltd. is good

in comparison to its competitors. There are less number of ATMs as compared to other banks. As so much rush in loan department auditing of that department not done regularly ,so bank must follow some procedure of auditing to check the loan activity. Lack of training to the employee. They have very good infrastructural facility. Regular timing and good experience of loan case.

Recommendations
A short advertising campaign in has produced good results

in a short span of times, so to gain long term benefits is very necessary for co-operative bank of rajkot ltd. to carry on this campaign with more intensity. Number of Branches should be increased covering a wider area in gujarat state. A wide publicity to be given about the organization and its products through various means of communications to keep growth moments Try to introduce marketing activity. Increase hiring department activity.

Conclusion:
As a part of my study, I have taken my training in

Shree Co-Operative Bank of Rajkot Ltd (Raj Bank).During my summer training I have observed so many things which are as below. Fully organized work is being done over there. All the employees are very much Co-Operative and Friendly. All the employees are well mannered and disciplined. Really, I have got very good experience during my summer project in Shree Co-Operative Bank of Rajkot Ltd.